Alto Ingredients Inc (ALTO)

[kel3]

Converting Wet Distiller Grains to $0.26c Per Gallon


producers are losing 32 cents on each gallon of the fuel made, up from 31 cents yesterday, excluding the revenue that can be pocketed from the sale of dried distillers’ grains
data compiled by Bloomberg show

The conversion rate of corn to distillers grains is: One ton of corn produces 378 L of ethanol and 479 kg WDG (70% moisture content), or 309 kg of DDGS (10% moisture content).

479kg = 1,056 pounds

309kg = 681 Pounds


1 Bushel Of Corn Weighs 17 lbs

17 lbs x 117.64 = 2000 lbs or 1 Ton

117.64 Bushels = 1 Ton

117.64 Bushels Of Corn = 1 Ton

Dec. future 1 Bushel Corn = $7.42

$7.42 per Bushel x 117.64 Bushels = $872.88

$872.88 Worth Of Corn Produces 1.056 Tons Of Wet Distiller Grains

1 Ton Of Wet Distiller Grains Is Worth These Prices In These States

Distillers Grains Plant Prices Per Ton: Dried Modified Wet

Iowa 245.00-270.00 120.00-135.00 82.00-92.00
Minnesota 235.00-245.00 130.00 80.00
Nebraska 282.00-285.00 135.00-142.00 97.00-115.50
South Dakota 250.00-258.00 130.00-135.50 92.00-98.00
Wisconsin 255.00-265.00 120.00-145.00 NQ
Eastern Cornbelt 248.00-260.00 123.00-130.00 NQ
Kansas 280.00-290.00 NQ 98.00-111.00


Lets Take the Middle Price for Wet Distiller Grains $95 per Ton,& Corn $872.88 per Ton

$872.88/$95 = 9.18

1/9th Of Corn Costs Are Recouped by Selling Wet Distiller Grains

(Dec '12) Ethanol $2.387

$2.387/9 = $0.26c

$0.26c Is Being Recouped from Each Gallon by Selling Wet Distiller Grains
http://www.bloomberg.com/news/2012-11-20/ethanol-strengthens-against-gasoline-on-higher-production-costs.html